Objective Implementation of the following norms in the Post Offices: Know Your Customers (KYC)...

Objective

Implementation of the following norms in the Post Offices:

Know Your Customers (KYC)Customer Due Diligence (CDD) • For the purpose of implementations of provisions on

prevention of Money laundering Act 2002 & CFT, MOF Department of Economic affairs (Budget division) has formulated the Prevention of money laundering & combating of financing Terrorism in small savings schemes. The above norms are to be applied in Post Office transactions.

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Know your customer

• Three risk categories defined

• Norms for each category spelt out.

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Three risk categories : Know your customer

Risk Category Accounts opened upto amount / Certificate purchased upto amount / Balance in all accounts and savings certificates upto

Low Risk Up to Rs.50,000

Medium Risk Exceeding Rs.50,000 and up to Rs.10 lakh

High Risk Exceeding Rs.10 lakh and balance in all accounts and certificate does not

exceed Rs 10 lakh1.1.A

Low Risk : Norms- Three risk categories : Know your customer

Low RiskAccounts opened upto amount / Certificate purchased upto amount / Balance in all accounts and savings certificates upto amount below Rs.50000/-

Norms ProofPhotograph 1 Recent Photographs

(2 in case of EDBO)

Identity proof Any one of the following :Electoral Photo identity card, Ration card with photograph, Passport, Driving License, POSB identity card, PO ID card, Govt. Identity card, (PPO, BPL, Job card), Aadhar Card (UIDAI), Identity card issued by schools and colleges.

Address proof Any one of the following :Electoral Photo identity card, Bank/POSB-PB/Current electricity bill/telephone bill (Not more than 3 months old), certificate from any public authority including area postman GDS or BPM, letter issued by UIDAI

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Medium Risk : Norms- Three risk categories : Know your customer

Medium Risk Accounts opened upto amount / Certificate purchased upto amount / Balance in all accounts and savings certificates upto amount between Rs.50000/- to Rs.10 lakhs


(2 in case of EDBO)

Identity proof Any one of the following :Mandatory : PAN or Declaration in Form 60/61Electoral Photo identity card, Ration card with photograph, Passport, Driving License, POSB identity card, PO ID card, Govt. Identity card, (PPO, BPL, Job card), Aadhar Card (UIDAI), Identity card issued by schools and colleges.POSB identity card, Govt. Identity card, (PPO, BPL, Job card), PAN card

Address proof

Any one of the following :Electoral Photo identity card, Bank/POSB-PB/Current electricity bill/telephone bill (Not more than 3 months old), certificate from any public authority including area postman GDS or BPM, letter issued by UIDAI

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High Risk : Norms- Three risk categories : Know your customer

High Risk Accounts opened upto amount / Certificate purchased upto amount / Balance in all accounts and savings certificates upto amount above Rs.10 lakhs


(2 in case of EDBO)

Identity proof Any one of the following :Mandatory : PAN or Declaration in Form 60/61Electoral Photo identity card, Ration card with photograph, Passport, Driving License, POSB identity card, PO ID card, Govt. Identity card, (PPO, BPL, Job card), Aadhar Card (UIDAI), Identity card issued by schools and colleges.POSB identity card, Govt. Identity card, (PPO, BPL, Job card), PAN card

Address proof Any one of the following :Electoral Photo identity card, Bank/POSB-PB/Current electricity bill/telephone bill (Not more than 3 months old), letter issued by UIDAI

Additional requirement

Copy of source of funds is necessary Note : If interest on SCSS is exceeding Rs.10000 in a year and declaration in form 15G & 15H is not given , PAN Card is mandatory

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FAQs

Minors - If account/certificate holder is minor, norms are applicable to guardians

Joint Holders- In case of joint holders , norms are applicable to all joint account/certificate holders

KYC documents already submitted - Customer who have already submitted KYC documents in any purchase, need not to submit these again. Account number/purchase application number through which KYC documents were given earlier to be mentioned. Note : Name and address of the customer should match with earlier KYC Documents.

Deposit is made through agent - The agent should attest all KYC documents. In case of direct investment, self attestation or attestation by Gazetted Officer is required.

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FAQs Minors - If account/certificate holder is minor, norms are applicable

to guardians Joint Holders- In case of joint holders , norms are applicable to all

joint account/certificate holders KYC documents already submitted - Customer who have already

submitted KYC documents in any purchase, need not to submit these again. Account number/purchase application number through which KYC documents were given earlier to be mentioned. Note : Name and address of the customer should match with earlier KYC Documents. The Supervisor to pass the remarks “KYC documents already submitted vide A/C No./Regn. No.___dated____”

Deposit is made through agent - The agent should also attest all KYC documents. In case of direct investment, self attestation or attestation by Gazetted Officer is required.

Mandatory : “KYC documents Verified and attached” needs to be written by the Supervisor on account opening form or purchase application

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Record keeping : DocumentsPost Office POSB Accounts Certificates

HO KYC documents (including those received from EDBOs should be attached with Account Opening Forms or kept in guard files

KYC documents (including received from EDBOs) should be attached with account opening or purchase application forms and kept in guard files.

SO RD/MIS/SCSS should be kept with account opening form or purchase application

SB/TD/PPF KYC documents should be kept in guard files.

KYC documents should be attached with account opening or purchase application forms and kept in guard files.

BO KYC Documents should be attached with account opening form and sent to Account Office.

KYC Documents should be attached with account opening or purchase application form and sent to Account Office.

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Record keeping : Documents

Post Office POSB Accounts and Certificates Attestation

HO Photo attached with Account Opening form or purchase application

APM to Attest photograph from ID proof.

SO Photo should be pasted in the SS Book (In case of SB/TD/PPF). In other cases i.e. RD/MIS/SCSS, pasted in A/C opening form .

SPM to Attest photograph from ID proof.

BO Two. One photo should be pasted in the SS Book and one in account opening form.

BPM to Attest photograph from ID proof.

Note : In case of SCSS two photographs are mandatory i.e. one for application form and another for Passbook

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Record keeping : Preservation

Record relating of all transactions to be preserved by SBCO 5 years

All Purchase Applications along with KYC documents 5 years after discharge.

At the time of closure of account, account opening form along with KYC documents should be attached with closure voucher and transferred to SBCO

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Reporting of transactionsCategory (Cash Transaction) Method of monitoring

All cash transactions exceeding 10,00,000/-Prepare list & send to :

•Head of Division on 3rd of following month.•Head of the Division to Circle by 5th •Head of the Circle to Principal officer at Directorate by 8th

All cash transactions in series which are less than 10,00,000/- at a time but are integrated & total exceeds 10,00,000/- in a month

Category (Suspected Transaction) Method of monitoring

Cash is accepted & Forged or counterfeit currency notes used or forgery of Security or documents

Prepare list & send to :•Head of Division on next working day.•Head of the Division to Circle by next working day of receipt from PO •Head of the Circle to Principal officer at Directorate by next working day of receipt from Head of the Division.

Any attempted transaction of Forged or counterfeit currency notes used or forgery of Security or documents

Suspected transaction1.1.A

Definition of Suspicious transaction

• A transaction including an attempted transaction, whether or not made in cash which, to a person acting in good faith-(i) gives rise to a reasonable ground of suspicion that it

may involve proceeds of an offence specified in the schedule to the Act regardless of the value involved: or

(ii) appears to be made in circumstances of unusual or unjustified complexity: or

(iii) appears to have no economic rationale or bonafide purpose: or

(iv) give rise to a reasonable ground of suspicion that involve financing of the activities relating to terrorism;

(v) Transaction includes deposit, w/d, exchange or transfer of funds in whatever currency, whether in cash or in cheque , payment order or other instruments or by electronic or other physical

means.

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Instructions for existing Accounts/Certificates (only in case of suspicion)

EXISTING ACCOUNTS

Types of measures to be taken

Procedure

KYC A printed notice will be handed over to the depositor / messenger at the time of next transaction (deposit / withdrawal) after receipt of this SB Order

In case of RD accounts opened through agents, the ID and Address proof should also be attested by agent concerned

CDD/KYC documents are also required to be taken in the existing accounts in case of Transfer of account, revival of silent account or when depositor’s signatures not matched with existing specimen

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EXISTING ACCOUNTS


Procedure

KYC Depositors or certificate holders to be served notice to furnish KYC. If he does not furnish KYC upto 3rd transaction, 4th transaction will not be allowed.

In case of fresh investment, the photocopy of existing passbook, certificate to be enclosed with application form

Transfer / revival of account to be allowed only if he furnishes the KYC

Transfer of maturity amount to be allowed only if he furnishes the KYC

If the existing account is closed, fresh KYC are to be taken

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EXISTING ACCOUNTS


Procedure

KYC In case of prospective customer living with relative, the customer should give ID proof and address proof of relative followed by relative’s self-declaration that prospective customer stays with him

In case the depositor does not co-operate in furnishing KYC, the matter should be reported to Divisional Supdt. who will order closure of this A/C and inform depositor of taking such decision.

Record keeping Same as prescribed for new accounts/certificates

Reporting Same as prescribed for new accounts/certificates

Suspected transaction

Report be sent immediately as prescribed for new customer

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Penalty

• In case of non-implementation of AML/CFT norms, a penalty from Rs.10,000 to Rs. 1,00,000 can be imposed under PML Act and rules in addition to disciplinary action.

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• Exercise 1

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Time Deposit

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FEATURES

• Any number of accounts can be opened

• Deposit should be in multiple of Rs.200/- and there is no maximum limit

• An adult, two adults jointly, minor of 10 years and above and Guardian on behalf of minor can open TD account

• Interest is calculated compounded quarterly and payable annually

• Account can be closed on maturity and unpaid interest is paid alongwith principal

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FEATURES….

• Premature closure not allowed before six months from the date of opening

• SB rate interest is payable if account is closed after six months and before one year

• Premature closure after one year from the date of deposit in 2/3/5 TD account carries and interest which shall be 1% less than the rate specified for completed years

• Interest already paid at higher rate should be set off against the principal / interest payable

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FEATURES….

• In case of death of depositor :

• Nominee can continue the account

• If it is closed prematurely, it will be treated as completed year TD account and interest will be paid at the rate fixed for the completed year TD account and for less than a year SB rate of interest will be paid for the completed months

• Post-maturity interest :

• If account not closed after maturity, PMI will be paid at the rate admissible to savings A/C

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FEATURES….

• Pledging

• TD A/C can be pledged as security as in the case of security deposit saving A/C.

• Procedure of opening

• The procedure will be similar like that of savings account

• KYC documents as per the risk category are required.

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FEATURES….

• Procedure of opening…

• If cheque is accepted, the date of realization shall be the date of opening

• Separate long book / LOT are generated for 1/2/3/5 TD accounts

• Interest is not added to the principal amount but it is shown separately both in ledger and passbook

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Premature Closure of TD A/c

• After six months• Interest shall be paid for completed years and

month• Shall carry interest 1% less than the rate

specified for completed years TD– Completed Years as per table– Completed months as per formula

RULE NO : 133 & 140 POSB Manual Volume -I1.1.A

Premature Closure of TD A/c

Period Rate (wef-1-4-13)Up to 6 M Nil6M- 1 Yr SB rate (4%)1Yr- 2 Yr 8.2-1 =7.22Yr- 3 Yr 8.3 -1=7.33Yr- 5 Yr 8.4 -1=7.4


Final closure on maturity

• All Head and Sub Postmasters can close the account independently

• Procedure as in the case of Savings Account• Interest due, if any, determined• Post Maturity Interest if any to be calculated

on amount due at SB rate.


FEATURES

• Accounts can be opened at all HOs and SOs

• Who can open?

• Individuals can open these accounts either singly or jointly by two or three adults

• Minor who has completed 10 years of age

• Guardian on behalf of minor

• In SB-3, depositor needs to furnish declaration in respect of balance in all MIS accounts does not exceed prescribed limit

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FEATURES….

• Deposit

• Minimum deposit is Rs.1500/- and in multiple of Rs.1500/-

• Maximum deposit is Rs.4.5 lakhs and Rs.9 lakhs in single and joint account respectively

• Only one deposit in an account

• Interest

• Monthly interest is payable on completion of a month from the date of deposit. If interest not withdrawn, no interest on interest

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FEATURES….

• Interest…

• Rate of interest -- 8.4%

• Monthly interest is rounded off to the nearest rupee.

• Maturity period is 5 years for the accounts opened on or after 1.12.2011

• Bonus

• No Bonus is payable at the time of maturity for accounts opened on or after 1.12.2011

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MIS- Monthly Interest

• Procedure as per Savings Bank Account withdrawal.

• Check whether interest is due.

• For automatic transfer, both Savings Bank Account & Monthly Income Scheme account should be in the same office

• Agent shouldnot act as messenger to withdraw interest

PPT 5.18.1 RULE NO : 162 POSB Manual Volume -I1.1.A

AUTO TRANSFER OF INTEREST• Authority letter is given by depositor to the

postmaster for crediting MIS Interest to SB A/C.

• PA prepares one withdrawal form for List of Auto Credit on the warrant side and postmaster signs it with remarks.

• PA fills in foil portion of pay-in-slip for List of Auto crediting the amount of interest into savings account .

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AUTO TRANSFER OF INTEREST

• Entries in passbook are made whenever depositor presents it

• In sanchay post option S.I entry available for auto entry

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Closure of account

• PMC Permitted after one year

• If account is closed after one year but before three years, reduction of 2% on deposit amount and if the account is closed after three years a reduction of 1% on deposit amount

• No bonus is paid in such case

• Account is closed on maturity after completion of maturity period, then principal amount is paid together with admissible bonus (if any) and outstanding interest (if any)

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POST MATURITY INTEREST

• If account is not closed after maturity, PMI is paid for the completed months at the rate admissible to savings account

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AMENDMENTS IN MIS RULES

• Rate of bonus 5% has been effective from 8/12/2007 to 30/11/2011.

• Auto transfer of MIS interest to Bank Account through ECS facility is available in selected HOs

• Through this system interest may be transfered from PO to bank .

• Facility for remittance of interest through money order available subject to certain conditions(SB order 13/2012)

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• Exercise 3

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• Senior Citizen’s Savings Scheme

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FEATURES

• Period of account is 5 years

• Account can be opened through SAS who does not get commission w.e.f. 1.12.2011.

• Who can open Account?

• Individual who has attained the age of 60 years on the date of opening

• Person who retires on superannuation

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FEATURES….

• Who can open Account?...

• Person who retires on VRS and attained the age of 55 years subject to the condition that account is opened within one month from the date of getting retirement benefits

• Defense personnel who retires from service

• Joint account can be opened with spouse only

• The investor will be 1st holder and his wife / husband will be joint depositor

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FEATURES….

• Depositor may operate more than one account subject to the condition that the balance in all accounts taken together shall not exceed the maximum limit

• Minimum amount of deposit is Rs.1000/- and in multiple of Rs.1000/- subject to the maximum of Rs.15 lakhs or retirement benefits whichever is less

• No withdrawal is permitted before 5 years

• Account can be continued for a further period of 3 years by making application

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FEATURES….

• Deposit can be made in cash or cheque

• Cash can be accepted if the amount of deposit is less than Rs.1 lakh

• If deposit by cheque, date of realization will be the date of deposit

• Nomination facility is available

• If nominee is spouse, he/she can continue the account provided he/she does not have another account in his / her name

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FEATURES….

• Rate of interest is 9.2%

• Interest is payable quarterly

• If period is less than quarter, it shall be paid proportionately

• If there is excess deposit in the account, the postmaster will inform the depositor to withdraw the excess deposit amount

• Such excess deposit amount carries SB rate of interest

• Interest paid at higher rates is recovered

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FEATURES….

• Facility of auto-credit of interest into savings account is available

• Pre-mature closure is allowed after one year from the date of opening

• If account is not closed after maturity, the depositor is paid PMI @ Saving account rate

• If closed after one year but before 2 years from the date of opening – deduct 1.5% on deposit. If the account is closed after 2 years – deduct 1%

• Fee for duplicate passbook – first time – Rs.10/- subsequent issue – Rs.20/-1.1.A

FEATURES….

• Account can be transferred from one PO to another and from post office to Bank.

• No transfer fee for deposit amount upto Rs.99000/-

• In other cases, first transfer Rs.5/- per lakh and subsequent transfer Rs.10/- per lakh

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FEATURES….

• Interest shall be payable from the date of deposit to 31st March, 30th June, 30th Sept & 31st Dec.

• If the date of payment of interest falls on holiday , the payment may be made on the previous working day.

• For calculation of interest less than quarter following formula may be applied

• No. of days in Period X Interest for the Quarter Total No. of days in Quarter• Interest can be remitted through Money Order and

amount of commission is to be deducted from the interest• Interest payable is subject to TDS recovery unless form

15G or 15H is submitted

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Closure Of SCSS Account

• Depositor to present :

• Fill up form-E

• Passbook

• Role of PA

• Examine passbook & form -E

• Verify balance & signature.

• Pass necessary remarks on form-E

• Postmaster will check all the records and will issue order for closure

PPT 5.11.11.1.A

Different Forms used for SCSS

• form A - for a/c opening

• form-B - for extension of account

• form-C - nomination change/cancellation form

• form-D – pay in slip

• form-E- a/c closure by Depositor

• Form F- a/c closure by spouse/legal heir / nominee

PPT 5.11.11.1.A

Different Forms used for SCSS

• Form -15-G-income certificate submitted by person aged less than 65 years

• Form -15 H-income certificate submitted by person aged above 65

PPT 5.11.11.1.A

FEATURES• Minimum Denomination Rs.10/- and thereafter

in multiple of Rs.5/-.

• Maximum - no limit

• Maturity period 5 years.

• Maturity value for Denomination of Rs.10/- Rs.746.51 / w.e.f. 1.4.2012.

• Rs 744.53/ w.e.f. 1.04.2013

• Opened by any adult or minor ( 10 year) or by guardian on behalf of minor

• Two adults jointly can open Account1.1.A

FEATURES

• If installment not paid for previous month, default fee @ 0.20 Paise for Denomination of Rs.10/- will be charged and proportionate for other Denomination

• If installment paid in advance for 6 month or more, rebate will be paid at the following rate

• Denomination Rs. 10/- 6 month Rs.1/-

12 month Rs.4/-

• Proportionate for other Denominations1.1.A

FEATURES

• KYC document With photo of depositor necessary

• While accepting cheque, the date of presentation will be the date of deposit

• On each page of passbook, denomination is written

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Withdrawal

• One interim withdrawal is allowed during the period of 5 years

• After one year from the date of opening

• Twelve deposits should have been paid

• Should not be a discontinued account

• Upto 50% of the amount at credit is allowed

• Amount of withdrawal should be divisible by 5

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Withdrawal….

• Any withdrawal taken on or after 01.01.2005 interest will be charged as per the interest fixed for the 5 year TD account + 2 % ,(At present 8.4%+2=10.4%)

• The withdrawal amount can be repaid in one lump sum or in instalment

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Repayment of Withdrawal….

• Depositor may repay the amount of withdrawal in equal instalments or in lump sum

• The amount of monthly repayment should be in multiple of Rs.5

• Repayment of withdrawal should be made along with monthly deposits only

• Interest on withdrawals:

• For repayment in instalments, interest is calculated on the outstanding balance of withdrawal at the end of each month

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Repayment of Withdrawal….

• Total interest recoverable on a withdrawal should be rounded off to the nearest rupee

• If it is repaid in one lump sum, the amount of withdrawal along with interest should be paid any time during the currency of the account

• If it is repaid on or before 10th interest is not charged for that month

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Pre-mature Closure

• Only after three years from the date of opening.• If there are advance deposits, up to the month of

advance deposits, account should not be closed prematurely

• Interest will be allowed at the rate of savings accounts

• Default fee paid if any will be refunded to the depositor

• Interest on loan repaid will also be refunded• Sub Offices are authorised to close the account

independently1.1.A

Final Closure of RD account

• Account can be closed after completion of 5 years

• Application for closure duly filled along with passbook should be submitted at the post office where the account stands

• Account will be closed at all HOs and departmental Sub offices independently

• If the date of maturity falls on holiday or Sunday, the account can be closed on previous day

• Post maturity interest –no time limit from the date of maturity

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Final Closure of RD account

• Account can be continued with or without deposit for another block of five years.

• If continued, maturity value as per the tables applicable ( with or without deposit) as the case may be will be paid.

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Protected Saving Scheme

• Under PSS Scheme if the depositor dies, full maturity value is paid to the nominee/legal heir

• Conditions :

• The total benefit admissible for all such accounts shall be restricted to as admissible for an account of denomination of Rs 50/-

• The age of the depositor at the time of opening the account should be between 18 and 53 years

• The instalments should have been paid for 24 months

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Protected Saving Scheme….

• 2 years should have been completed

• During first 24 months, no withdrawal should have taken place

• Account should not be a discontinued one

• Claim should be preferred within one year from the date of death of the depositor

• The Head Postmaster will settle the claims

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Pay Roll Saving Scheme

• Employees in a firm / factory / institutions / offices / bank etc. need not come to post office to make deposits. Instead they may authorize the pay disbursing officer to deduct the monthly deposits from their salary

• The group leader will after deducting the deposit amount from the salary will prepare a list called “Pay Roll List” and present it to the post office along with passbooks concerned and the pay-in-slip for the entire amount. The specimen pay roll will appear as below.

• Group leader is entitled for a commission of 2.5%1.1.A

Specimen of Pay Roll List

SL No

A/c No

Name of Depositor

Amount BAT DLT Card No Remark

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Mahila Pradhan Kshetriya Bachat Yojana

• An agency scheme for mobilising RD deposits• This agency system is open only for women• Agents canvas deposits and credit in POs

alongwith schedule and single pay-in-slip• They are entitled for a commission of 4%

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Exercise 5

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Small savings schemes• Saving Account :• Deposits and withdrawals are permitted

everyday

• Rate of Interest -- 4%

• Minimum Initial Deposit --Rs.20/-

• Maximum Deposit/Balance--No limit w.e.f. 1.10.2011.

• Balance after making withdrawal without cheque facility Rs.50/- and with cheque facility Rs.500/-.

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Small savings schemes• Types of Savings Account• (a) Single Saving Account• An Adult, a minor who has attained 10 years,

guardian on behalf of minor can open Saving A/C• Any numbers of A/C can be opened but not more

than one A/C in one PO in the name of same depositor(s)

• (b) Joint Saving Account : Two or three adults jointly• JointA Account:Operated by all depositors jointly• Joint ‘B’ Account :Operated by any one of the

depositors1.1.A

Small savings schemes

• (c) Pension Account :• Can be opened by pensioner, Family Pensioner of

Railway, Posts or Telecom

• Maximum balance No limit

• (d) Sanchayika Account

• Can be opened by three individuals jointly. One of them will be the Principal or Teacher of the school and two students not below the age of 10 years

• No maximum limit of balance

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Opening Of Savings Account

• Depositor to Present :

• Fill Up Account opening form (SB-3) & Pay In Slip (SB 103) Properly

• Attach Photograph & KYC document

• Furnish the identity (witness) in case of nomination. Avail the facility of nomination for early settlement of case

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Opening Of Savings Account…

• Scrutiny of SB-3 & pay in slip

• Check eligibility for opening of account

• Check the cash tendered with pay in slip

• Get the blank passbook from postmaster.

• Make relevant entry of deposit, nomination, specimen signature and prepare passbook

• Submit all above documents to supervisor

• On receipt from supervisor return passbook to depositor

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• Check Points :• Saving A/C can be opened by Cash only

• Depositor (other than illiterate, blind and physically handicapped) opening individual account has to attend the post office for opening of account.

• A minor needs to attend office personally

• SBPA, SPM and BPM should not fill the form themselves for the depositor

• If signature of depositor is in English, it should be in running hand only

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• Check Points…

• Illiterate or Blind depositors may affix their left thumb impression or personal mark in place of signature which should be attested by a person known to post office giving his name and address

• Introduction can be given by a person known to the post office. If introduction is not given, identification can be given through any prescribed document or through KYC.

• Instead of introduction, identification may be given by Identity Card like Driving licence, passport, PAN Card etc.

• Witness to introduction is not necessary.1.1.A

Role Of Supervisor

• Check the document produced by counter Postal Assistant & authorize

• Check the entry made by SBPA and sign

• Return the documents to SBPA

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Nomination

• Nomination facility is available in single, joint and pension account

• Not permitted in minor account

• Name and address of nominee are required to be mentioned in SB-3

• Witness to nomination is obtained

• If nominee is minor, depositor may show particulars of person who will receive the amount if depositor dies during minority of nominee

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Nomination….

• Register of nomination for SB A/Cs is maintained in HO only in Sanchay Post

• HO intimates Registration No. and its date to SO through SB Slip

• On receiving nomination particulars from HO, SPM will enter it in Sanchay Post

• Nomination may be cancelled or varied by application in SB-55

• Fee for cancellation or variation is Rs.1/-

• Note :- Physical Nomination Register is discontinued for PO working in SB-LAN

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Specimen Signature• Maintained at sub office or branch office

• S/S Slip of depositor is pasted in S/S Book and note account number on S/S slip and countersigned in red ink by SPM

• S/S to be date stamped in such a manner that part of the impression is on S/S slip and part on the leaf in S/S book

• If illiterate depositor, LTI should be obtained on the slip and pasted on S/S book

• In Sanchay post, there is provision to scan signature and no need to maintain it in book

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• A Specimen signature book

Date Account Number

Name and Address of the depositor

Specimen signature

27.12.12 204205 Jyoti R.Shah, Madhuri Society, House no. 143 , Vadodara 390007

204205

SAS

COUNTERSIGNED

SUB POSTMASTER Race Course – Vadodara 390007.

27.12.12

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Ledger Bound Book

• A document in which transaction of deposit and withdrawals are mentioned

• One leaf allotted for each account

• Transactions noted as and when they take place

• Balance after transaction noted by SPM

• In Sanchay Post, entry comes automatically

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Passbook

• It is a depositor’s record which shows record of transactions done by depositor

• Issued by HO & SO to the depositor

• For SOs, blank passbooks are supplied by HO

• For A/C opened at BO passbook is issued by Account office

• Stock register for passbooks is maintained by SPM

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Passbook……

• Computerized and manual passbooks are available

• Computerized passbooks common for all category of a/cs

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Opening of A/C at BO

• BPM accepts SB-3, Pay-in-slip, S/S Slips and cash and issues SB Preliminary Receipt (SB-26)

• SB-26 Receipt books are available in bound book with 50 receipts

• Prepared in triplicate by using double sided carbon paper

• First copy issued to depositor, Second to A/C office and third copy is retained as O/C.

• At the time of delivery of Pass book, depositor’s copy is taken back under aquittance and pasted with O/C

• Particulars of A/C opened noted in BO D/A

• SB-3, SB-26, Pay-in-slip & S/S are sent to AO1.1.A

Opening of A/C at BO…

• Index of SB-26 is maintained in Sub Account module

• SBPRs are kept by SB PA

• Check deposit noted in BO D/A

• Paste S/S in Specimen book

• After scrutiny of SB-3, pay-in-slip etc. account is opened like opened at Sub Office

• Passbook sent to BO duly invoiced in BO slip

• Particulars of nomination are noted in passbook subsequently whenever received from HO

1.1.A

Subsequent Deposit• Can be made by cash, Cheque, DD, dividend warrant,

IPO, Income tax refund order, Pay Order, Interest warrant issued by RBI, withdrawal from account of depositor, discharged of saving certificate, matured amount of RD/TD accounts, pension bills of P&T pensioner

• Depositor to present• Passbook (Not mandatory in case of cheque account)

• Amount of deposit – Minimum Rs.5/- in cash and Rs.20/- by cheque

• Pay-in-slip (SB-103)1.1.A

Subsequent Deposit….

• Where deposit can be made :

• For A/C standing at BO • At BO/its SO/HO

• For A/C standing at SO• At SO / Any SO under same HO / its HO

• For A/C standing at HO• At HO itself / Any SO under same HO

1.1.A

Subsequent Deposit….• Role of SB PA :

• Examination of passbook & pay in slip

• Collect cash and make initial in pay-in-slip

• Affix date stamp on pay in slip (foil & counter foil) and passbook (if not computerized)

• Making entry in Sanchay Post

• Automatically amount will be posted in ledger

• If computerized passbook, give entry in passbook also

• Check entries in pay-in-slip, passbook, ledger

1.1.A

Subsequent Deposit….

• Role of Supervisor :

• Authorize transaction in Sanchay Post

• Initial for transaction in Passbook

• Transaction will be posted in long book automatically

• PA to deliver passbook with counter foil of pay in slip to depositor

• Foil of pay-in-slip is retained and it served as voucher

1.1.A

Subsequent Deposit at BO…

• SB PA receives SB-103 from Sub A/C PA

• Make entry through Sanchay Post

• Entry will be automatically posted in ledger

• SBPA verifies DLT / BAT and notes it in pay-in-slip

• SPM checks document and authorize through Sanchay Post

• Entry will automatically be posted in long book

1.1.A

Subsequent Deposit By Cheque

• Cheque should not be more than three months old

• Should not be post-dated cheque

• Drawn in favour of depositor or postmaster

• Amount in words and figures should tally

• Generally crossed

• Particulars of cheque should be written in pay-in-slip and presented along with cheque

• Endorsement and signature of depositor on reverse of cheque not necessary1.1.A

Subsequent Deposit By Cheque..

• Date of realization will be date of deposit

• For outstation cheque collection charges :• Cheque value upto Rs.1000/- -- Rs.30/-

• Every additional Rs.1000/- or part -- Rs.3/-

• No collection charges for POSB cheques

• Procedure :

• SB PA to check :

• Whether cheque presented fulfills the conditions prescribed1.1.A


• Whether particulars of cheque are noted in the pay-in-slip

• Impress date stamp and sign on foil and counterfoil

• Note A/C No. and impress date stamp on the back side of cheque

• Detach counterfoil and hand over to depositor

1.1.A


• Prepare cheque list in Sanchay Post

• Cheque alongwith LOT is sent to HO

• Realize it through Sanchay Post at HO and post it in the A/C

• Intimate SO through SB slip

• Deposit will not be shown in LOT

• Amount entered in passbook whenever presented

• If cheque is local and not crossed, SPM can collect the cheque by presenting in the Bank Counter and afford credit without sending to HO1.1.A

WITHDRAWAL

• From where withdrawal can be made?• For accounts standing at HO or SO • Withdrawal can be made from the office where account

stands

• For accounts standing at BO • Withdrawal is permitted at BO and also at its AO

• From accounts standing at BO• only one withdrawal is permitted in a day

• For accounts standing at departmental office• No restriction on the number of withdrawals in a day

1.1.A

WITHDRAWAL….

• Minimum amount Cash – Rs.5 By cheque-Rs.20

• The maximum amount of withdrawal sanctioned by the GDSBPM is Rs.5000/-, the withdrawal exceeding Rs.5000/- sent to account office

• The balance after withdrawal should not go below Rs.50/- in case of ordinary account and Rs.500/- in case of cheque account

• Documents presented for withdrawal

• Passbook (Not necessary for cheque A/C)

• Withdrawal application signed by the depositor

• Other conditions….

1.1.A

WITHDRAWAL….

• Other conditions….

• If depositor illiterate - LTI to be attested by respectable person known to the post office

• If messenger appointed – Name of messenger and signature of depositor is compulsory ( SAS& MPKBY Agent should not act as messenger)

• Minor cannot appoint messenger

1.1.A

WITHDRAWAL….• Other conditions….

• Generally messenger not permitted for illiterate or blind depositor

• Withdrawal on behalf of minor – Guardian to furnish the prescribed certificate

1.1.A

WITHDRAWAL….

• Role of SBPA

• Examine passbook & SB-7 form

• Verify balance & signature & sign below the signature of depositor

• Make entry in records viz passbook etc

• Make entry in SB-7 in warrant portion

• Make entry in concerned record through Sanchay Post

1.1.A

WITHDRAWAL….

• Role of SBPA…• Send the documents to supervisor• Role of supervisor • Verify the signature if amount exceeds Rs. 5000/-• Sign the documents produced by SBPA• Authorize the transaction by Login as Supervisor

in Sanchay Post• Transfer the records to SBPA

1.1.A

WITHDRAWAL….

• Role of SBPA

• After receipt of pay order by supervisor obtain acquitance in SB-7

• Effect the payment & return passbook

1.1.A

WITHDRAWAL….

• Points to be observed while sanctioning withdrawal

• Identification of depositor : By Person• Any respectable person whose signature or seal is

familiar to Post Office i.e., Attestation by College principal, school headmaster, Gazetted officer

• A Scheduled Bank• Another depositor of that office (attesting

depositor’s signature should tally in the first instance)

1.1.A

WITHDRAWAL….

• Identification of depositor : By documents

• Postal Identity card, Passport, Driving licence, etc., containing the photograph of the depositor

• Photograph of the depositor & KYC document kept in the PO.

•

1.1.A

WITHDRAWAL….

• Identification of depositor : By documents

• Identification by personal marks of depositor recorded in a register (facility available at HO and selection grade SOs)

• SB Identity card (Available at all offices). Depositor to supply photograph

• Identification or attestation by the Messenger is not accepted

1.1.A

WITHDRAWAL….

• Withdrawal at BO Role of SBPA• To verify the balance of passbook and SB-7

with ledger• Compare signature in application with SS

book/Scanned signature• If signature tallies, sign below the signature of

depositor in token of having verified. If does not tally – to instruct BPM in the warrant of payment to pay on identification

1.1.A

WITHDRAWAL….

• Role of SBPA…• Fill in warrant of payment and enter in the

Register of warrants passed (SB 45) exceeding Rs.5000/-

• Get signature of SPM/APM• Hand over the passed warrant to sub account

PA by getting acquaintance in SB.45 Register• After payment of the Passed Warrant , Date of

Payment is required to be noted in SB 45.

1.1.A

CHEQUE ACCOUNT

• Cheque Account facility not available

• Account opened by Minor himself

• Illiterate depositor

• Cheque withdrawal is permitted in respect of all other accounts

• Depositor must be –

• A literate adult: i.e. able to sign in running hand

• Must maintain balance of at least Rs.500/-

• Depositor should mention “Cheque Account” at the top of application (SB-3)

1.1.A

CHEQUE ACCOUNT….

• Issue of cheque book

• Blank cheque books always kept in the custody of Postmaster

• PA to impress rubber stamp showing name of the office on the cover page and on all the leaves of cheque book before issue

• Note the A/c number on the cover page and on all the cheque leaves

• For withdrawal by cheque passbook is not necessary. Entry in passbook is made later

1.1.A

CHEQUE ACCOUNT….

• Check points in withdrawal by cheque

• Cheque issued from that office

• Not mutilated or torn

• No `stop payment’ instruction received from depositor

• Correction if any attested by full signature of depositor

• No withdrawal after the death of the depositor

• Amount noted in words & figures agree 1.1.A

CHEQUE ACCOUNT….

• Check points in withdrawal by cheque….

• Currency period three months from the date of issue.

• Minimum amount Rs 20/-

• (if balance falls below Rs 500/, withdrawal may be allowed but the depositor to be told that the cheque facility will be withdrawn if the balance is not made good)

1.1.A

CHEQUE ACCOUNT….• Action for payment

• PA: Verify the signature of depositor with SS and sign in red ink below the signature of depositor

• Make entry of withdrawal by Login as Operator in Sanchay Post

• PA Write BAT and DLT and impress date stamp on the reverse of the cheque

• SPM Also to verify the signature if amount of withdrawal exceeds Rs5000/-

1.1.A

CHEQUE ACCOUNT….

• Action for payment....

• Cancel the signature in the cheque with wavy line in red ink

• Authorize by Login as Supervisor in Sanchay Post• Write or impress rubber stamp `pay cash’ on the

face of cheque and sign in full in red ink – authority for payment

• After payment, write or impress rubber stamp ‘paid cash’

1.1.A

List Of Documents (SB-104)

• Prepared at Sub Office in duplicate and sent to Head Office

• If no document is sent a remark “ NO DOCUMENT

SENT” noted on the top of the List of Transaction in Red

ink with signature of Supervisor

• Document to be arranged in serial order as noted in the list

1.1.A

List Of Documents (SB-104)

1.1.A

LIST OF TRANSACTION (SB-60)

• Prepared by Counter Postal Assistant after closure of counter• Entries arranged according to Serial order of account number• Total of transactions, amount of deposit / withdrawal struck at the end• Counter Postal Assistant & Supervisor to sign.• Total of List Of Transaction and Long Book should agree• In Sanchay Post it is generated automatically

1.1.A

Calculation Of Interest• Interest Bearing Balance

• Lowest balance between close of 10th and last day

of calendar month

• Fraction of rupee should be ignored.

• Interest Calculated up to March every year

1.1.A

Calculation Of Interest….• Total Interest Bearing Balance from April to

March taken.

• Interest = Total Interest Bearing Balance X Rate of interest

• 12 X 100

• Interest arrived at is less than Rs.1 not added to the account

• If interest in fraction of rupee, fraction amount rounded off to nearest rupee

1.1.A

Calculation Of Interest….• Interest calculation is done at Head Office only

(For A/C at Head Office/Sub Office/Branch Office)

• Interest statement sent to all Departmental Sub Offices for posting in passbook

• In Sanchya Post Software Interest calculation is done automatically

1.1.A

Receipt For Depositor’s Passbook(SB-28)• Issued whenever the passbook is taken by the Post Office for any purpose and not returned immediately - • Prepared by Postal Assistant• Login as Operator in Sanchay Post and generate receipt in duplicate

• Noting details of passbook• When passbook returned acquittance obtained in depositor’s copy &pasted with office copy

1.1.A

Closure Of Account

• Depositor to present :• Fill up SB-7(a) form • Passbook and• Unused cheque (if any )• Role of SBPA• Examine passbook & SB-7(a). • Verify balance & signature.• Login as Operator in Sanchay Post & make entry • Make entry in SB-7(a) in warrant portion and send

to supervisor

1.1.A

Closure Of Account….

• Role of SBPA….• In case of cheque account, SB-7(a) is must.• Collect all unused cheques and transfer to

supervisor for remarks.• Role of Supervisor• Check the entry in Sanchay Post• Verify the signature• Sign the documents produced by counter

Postal Assistant

1.1.A


• Role of Supervisor…• In cheque account, all blank cheque

surrendered by depositor should be cancelled & transferred to Savings Bank Control Organization.

• Role of SBPA• After receipt of pay order from supervisor

obtain acquitance in SB-7(a). • Effect the payment & return passbook

with all remarks of closure.

1.1.A


• Closure of accounts at LSG & above Sub Office• LSG SO closes the accounts after calculating the current year

interest as done by HO subject to the following conditions• only individual savings account (except pension account)• Pass book should be produced and PB balance & Ledger

balance should agree• Interest up to the previous final year should have been posted

in Ledger

1.1.A

Transfer of accounts

• Action on outward transfer applicationsWhen transfer is not allowed?

• After the death of the depositor

• Silent account before revival

• When an account has been ordered to be closed(like 2 savings account in the name of one person in a PO)

1.1.A

What does the depositor submit?

• An application for transfer- SB 10 b- printed or on a plain paper- [Have look at SB 10 (b)]

• Pass book

• Where can the depositor submit SB 10 b?

• At the transferring office

• At another office

1.1.A

Checks Points in SB 10 (b)• That all columns are filled in completely

• Details in the pass book and SB 10 b match

• In case of illiterate depositor, the LTI is attested by a witness with necessary certificate

• In case of minor account, prescribed certificate as in the case of withdrawal is given

• In the case of joint account, all the depositors have signed SB 10 b

• If the transferee office is a BO, get additional specimen signature

1.1.A

Action if submitted in transferring office

• Check the signature with reference to SS book• Affix date stamp on the application• Check the balance in the ledger, pass book and the one

furnished in the application form• Update the pass book, if cheque transaction is to be

posted• Take the SB-3 out, if it is maintained in your office• Make entry in the Register of applications for transfer if

it is a head office• If it is a sub office, make a remark on the top of the

ledger, pass book, SS book and nomination register(if needed), “Transferred to …………SO under …………HO. Application for transfer sent to HO on …………

1.1.A


• Make a remark in the particulars column of ledger as “Paid by transfer to...SO under…HO

• Show the balance outstanding in the withdrawal column in the ledger and pass book and strike the balance as NIL

• Submit Register of applications for transfer(in case of HO), SB 10 b, ledger, nomination register(if needed) and pass book to postmaster

• Get the documents verified and get the specimen signatures in the SB 10 b countersigned by the postmaster

1.1.A


• Return the pass book to the depositor

• Fill up the acknowledgement portion of SB 10 b

• Detach the acknowledgement portion and hand it over to the depositor

• Make entry of the transfer application in the list of documents

• Forward it to HO

1.1.A

What advise needs to be given to the customer?

• Please keep the acknowledgement safely

• Please produce the acknowledgement and pass book at the transferee office after ….. Days

• Please make deposit in the transferee office even if the transfer has not taken effect, in case of RD accounts only.

1.1.A

Action on application submitted at Transferee office

• Check that the application is complete

• Check the balance in the pass book and the one furnished in the application form

• Affix date stamp on the application

• Prepare SB 28 receipt

• Submit SB 10 b, pass book and SB 28 book to the postmaster

• Get the SB 28 signed by the postmaster

• Give the original SB 28 receipt to the customer

• Forward the SB 10 b and pass book by Registered post to the Head office of the office where the account stands1.1.A

What advise needs to be given to the customer?

• Please keep the SB 28 receipt safely

• Please produce the SB 28 receipt after ….. Days

• You can make deposits even without pass book, in case of RD accounts only, in case the transfer is not effected.

1.1.A

Action on inward transfer applications

• What will you receive in the SO?

• Advice of transfer

• SB 10 b and additional specimen signature, if any

• SB-3

All the above will be received listed in SB slip

1.1.A

Action on advice of transfer received

• Make an entry in the Register of ATs received and disposed• Get the entry in the register attested by postmaster• Allot next number with reference to SS book or index register• Open the account in the concerned ledger in red ink• Show the date of transfer as the date of opening in the

transactions particulars portion• In the particulars column write “Account opened for Rs …………..”• Post the balance in the AT in the deposit column and strike the

balance with the same figure

1.1.A

Action on advice of transfer received• If IBB has been furnished in the AT show the IBB for

every month of the current year in the IBB column and for the current month in the remarks column

• If previous years’ interest has been shown in the AT(which has not been posted in the pass book) note the same in remarks column

• Any other item shown in the AT(nomination etc.,) should be noted in the ledger

• Make an entry in the nomination register and assign next registration number

• Note this number in the ledger and SB-31.1.A

Action on advice of transfer received• Paste the SS slips in the SS book with address noted

in red ink• Make an entry of the new account number in the AT

and the SB-3• Date stamp the AT• Make an entry in the AT register about the date of

opening and the new number assigned• Submit AT, SB-3, ledger, SS book, Nomination

register and Register of ATs received to the postmaster

1.1.A

What does the postmaster do?

• Checks all entries in the ledger and see whether it tallies with entries in the AT

• Signs the ledger, nomination register and AT

• Initials the Register of ATs received

• Returns all documents to PA

1.1.A

How will you dispose the AT

• List the AT and SB-3 in the List of documents to the HO

• Retain SB-3 in the same office, in case of RD, TD, MIS and Form-A for SCSS

• Inform the BOs through BO slip in case of accounts to be opened in the BOs along with additional specimen signature slips

1.1.A

Issue of duplicate pass book

• Issued by departmental SOs & HOs

• Application in the prescribed form

• Fee Rs.10 (postage stamp)

• Depositor to furnish details

• SPM to satisfy about identity of depositor

• Note remarks in application about identity

• Enquire whether the PB is at HO

• Issue duplicate PB

• Note remarks in ledgerRULE NO : 68 POSB Manual Volume -I1.1.A

Issue of duplicate pass book

• Single and double handed SPMs cannot issue duplicate passbooks of RD/MIS/SCSS

• Postmasters of ‘A’ Class and above post offices can issue the duplicate passbooks of all categories

• Single and double handed SPMs can issue the duplicate passbooks of SB/TD

RULE NO : 68 POSB Manual Volume -I1.1.A

SILENT ACCOUNT

• Silent Account means

• An account where no transaction (deposit or withdrawal) has taken place for three complete financial years

• An account listed by the HO in the list of silent accounts

• The list of silent accounts prepared by SBCO and supplied by HO

1.1.A

SILENT ACCOUNT….

• SPM to Login as Supervisor and treat the account as silent

• Keep the list of silent accounts in a guard file as a permanent record

• At Head Office, silent accounts with balance of less than Rs.50 a sum of Rs.20 is debited to the account every year by the Head Post Office and intimation sent to the depositor

• When the balance becomes NIL in such accounts it will be deemed to be closed

1.1.A

SILENT ACCOUNT….

• Revival of Silent Account

• Depositor to make an application on a plain paper with PB at an office where the account stands followed by deposit or withdrawal

• SB-28 Receipt issued to the depositor

• Signature of the depositor in the application to be verified with SS and the balance verified with ledger

• CDD/KYC documents are required to be taken 1.1.A

Forms used for Saving Bank • Different forms used in SB

• SB-3-appliction form for new A/C

• SB-1 ledger card

• SB-5 passbook

• SB-6 S/S book

• SB-7 Withdrawal Form

• SB-7(a)- Closure Form

• SB—10(b) Application of transfer of A/C

• SB-26- BO Receipt for opening of new A/C1.1.A

`

• SB-27 –SB slip

• SB-28- Receipt for Depositor’s Passbook

• SB-45- Register of withdrawal at BO exceeding Rs.5000/-

• SB-44- Register of Undelivered Passbook

• SB-58- Long Book

• SB-60- List of Transaction

• SB-103- Pay in slip

• SB-104-List of Documents

Forms used for Saving Bank

1.1.A

Basic Savings Account

1.1.A


• Effective from 20.05.2013• Workers wage account, Old age/Widow/

Disabled pension accounts are coming under BSA. All existing zero balance accounts are renamed as Basic Savings Account

• Registered adult member of any government welfare scheme can open

• Guardian can open on behalf of minor• Only one account can be opened

1.1.A


• No minimum amount to open and minimum balance need not be maintained in account

• In addition to Govt. benefits, other deposits are also allowed

• All facility of savings account except cheque facility

• Only single accounts may be opened, however joint accounts already opened under NREGA may be continued

1.1.A


• Obtain copy of letter/card issued by state or central govt. depts. declaring the beneficiary

• Address proof should be obtained as applicable for low risk category

• Separate block numbers to be allotted• Separate LOT may be printed through DBA• Facility can be extended to any other social security

schemes of Govt. not presently listed by obtaining code from SDC, Chennai

• Accounts can be opened in BO also• Scheme code should be entered at the time of opening

account. List of existing schemes are furnished in the next slide

1.1.A

• Exercise 6

1.1.A

FEATURES

• Account can be opened by single adult or guardian on behalf of a minor

• Account can be opened with Rs.100/- at HOs or authorized SOs and nationalized banks

• Account can be opened by local / outstation cheque also. For outstation cheque clearing charge should be collected in advance

• Minimum amount of deposit is Rs.500/- and in multiple of Rs.50/- and maximum amount of deposit is Rs.100000/- in a financial year

• Minimum 1 deposit and maximum of 12 deposits in a financial year

1.1.A

• Public Provident Fund

1.1.A

FEATURES….

• If failed to credit minimum amount in One F.Y Rs 50/-penalty charged and credited in UCR.

• The period of account is 15 years from the end of the year in which account is opened

• Rate of interest is 8.7% per annum • IBB is the lowest balance in between close of 5th and end of

the month• Loan can be taken from the third financial year• Amount of loan is 25% of the balance at the end of second

year preceding the year of application for loan• Fresh loan is not allowed unless previous loan amount is

repaid• No loan is admissible after 5 years1.1.A

FEATURES….

• 2% interest is charged for loan amount if it is repaid within 36 months

• 6% interest is charged if loan is not repaid within 36 months

• Withdrawal is allowed after 5 years from the end of the year in which the account was opened

• Only one withdrawal in a financial year is allowed

• .

1.1.A

• Amount of withdrawal is not more than 50% of the balance at the credit at the end of fourth year immediately preceding the year in which the amount is withdrawn

• Or

• At the end of the preceding year whichever is lower

1.1.A

FEATURES….

• Withdrawal amount taken need not be returned

• Investment in PPF account is exempted under Section-88 of Income tax and interest thereon is totally exempted

• Depositor can close account in 16th financial year.

• The account can also be continued for further block of five years

• Not liable for attachment by court or other authority except for maintenance and income tax recovery1.1.A

• Exercise 7

1.1.A

SAVING CERTIFICATES AT A GLANCE

1.1.A

Who can purchase NSC

1. An adult2. Two adults jointly – A or B type3. A minor (of 10 years age)4. An adult on behalf of a minor

1.1.A

Comparison chart

Feature NSCVIII issue NSC IX issueDate of introduction

08.05.89 1-12-2011

Denomination Rs.100, 500/- 1000/- 5000/- & 10,000

Rs.100, 500/- 1000/- 5000/- & 10,000

Maturity Period 5 Years 10 Years

Maturity Value per Rs 1000/-

Rs. 1523.50 (01.04.2012)Rs 1516.20 (01.04.2013)

Rs. 2388.70 (01.04.2012)Rs 2366.00 (01.04.2013)

Lock upperiod

5 years 10 years

Tax benefit Available Available

Limit No limit No limit

Post Maturity Interest Available Available

Transferability Can be transferred from one holder to another

Can be transferred from one holder to another 1.1.A

Comparison chart

Feature KVP( discontinued w.e.f 01-12-11)

Date of introduction

01.04.88

Denomination Rs 100, 500/- 1000/- 5000/- 10,000 50,000/-

Maturity Period 8 years 7months

Maturity Value per Rs 1000/- Rs 2000/-

Lock upperiod

2 Years 6 months

Tax benefit Not Available

Limit No limit

Post Maturity Interest Available

Transferability Can be transferred from one holder to another

1.1.A

PROCEDURE FOR ISSUE

• Collect a blank certificate from the postmaster

• Write the name and address of purchaser in block letters

• Write the date of maturity in the space provided

• Assign registration number generated from the system

• Impress date stamp on the certificate

1.1.A

PROCEDURE FOR ISSUE

• Impress oblong stamp on the application and place the file before the postmaster who checks and signs on certificate and below the nomination particulars, on the application

• Deliver the certificate after taking signature on the application for purchase

• Note :- In Sanchay Post the registration and nomination numbers are generated automatically from system,

1.1.A

PROCEDURE FOR ISSUE

• Issue Journal (If Manual) :

• Duplicate in HO [NC-18] and Triplicate in SO [NC-18(s)]

• Separate Journal for each kind of certificate and each denomination

• Kind of certificate and denomination written on top

• Entries : Account ending date Entry number in the journal in monthly serial

1.1.A

PROCEDURE FOR ISSUE

• Entries : Date of issue of certificate Serial No. of certificate issued Name of Purchaser Issue price of the certificate Regn. No, mode of payment and stock of unsold

certificate

• Totals written at the end of the day

• Impressed with name and oblong stamp

• Signed by the Postmaster1.1.A

PROCEDURE FOR ISSUE

• First copy sent to HO as Audit Return after completion of account month

• Second copy sent to HO along with SO Daily A/C

• Third copy retained as office copy

• In sanchay post issue journal generated automatically from system

1.1.A

Preparation of NC 4(a)

• Issued if– Payment by cheque/DD– No stock of NSCs for issue– Large number to be issued to one purchaser

• After issue of Certificate– Get back PR with acquittance– File with original application

Rule No. 13 POSB Manual Volume -II1.1.A

ENCASHMENT OF CERTIFICATE

• NSCs can be encashed by personally attending the post office or through messenger

• PA to check :

• Period of non-encashability is over

• Certificate is not lost or stolen

• Certificate is not attached by court of law

• Certificate is not the one in lieu of which a duplicate has been issued

1.1.A


• Ask the holder to write amount payable, on the reverse of NSC, in figures and words and to sign with date

• Take the application with reference to registration No. and compare the signature with specimen

• Place the documents before the Postmaster for checking and authorization for payment

• Postmaster :

• After checking, write his orders “Please pay” on the back of NSC

1.1.A


• PA will pay the amount to the holder

• Note the date of encashment on the application for purchase (Which is initialed with date by the postmaster)

• Impress oblong stamp on reverse of certificate

• Note : Because of Sanchay post, the step of cancelling the nomination is not required. Also, the discharge journal is automatically generated.

• Discharge Journal prepared in triplicate in SO [NC-19(s)] and duplicate in HO [NC-19]

1.1.A


• Through Messenger : Holder to send authority letter containing attested

signature of messenger Holder to sign the certificate Usual formalities of obtaining postmaster’s payment

order Messenger to acknowledge the amount on NSC below

the signature of holder The signature of messenger on certificate compared

with signature on authority letter and payment is made1.1.A

Encashment certificate At other than office of registration (other office )

• What does the customer present?

• Matured certificate(s)

• Pledge Release order, if any

• Manuscript application expressing his desire to encash the certificate at that office

1.1.A

What will the customer fill in the application form?

• Name of the PO in which the certificates stands registered

• Full particulars of the certificate viz. Date of Issue, Sl No. of the certificates, Prefix letters, if any, registration No., Date of maturity, Full name and address as given in the application for purchase of certificate, date of birth if the certificate is in the name of a minor

• Present address with phone number• Signature of the holder

1.1.A

What checks do you make?

• Whether the maturity period is over• If not, whether the Period of non encashability has

expired.• Whether the certificate is not the one which has

been reported lost or stolen

• Whether the certificate is a pledged one and if so whether the pledge release order produced by the holder is correct.

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What action do you make after checking?

• Compare the details in the manuscript application with the one available on the certificate

• Submit the manuscript application, pledge release order, if any and the original certificate to the Postmaster

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Action by the Postmaster

• Verifies the certificate, manuscript application and pledge release order, if any.

• Endorses remark, “ Compared the particulars of the certificate and found correct”

• Authorises transmission of the application to his divisional office.

• Returns the certificate and documents to PA

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How will you dispose the application?

• Return certificate in original to the holder

• Return pledge release order, if any, to the holder

• Date stamp the application

• Forward the application to your Divisional office by Registered Post

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What advise do you give the customer?

• Please keep the certificates and pledge release order(if any) safely

• Please attend the office after 21 days with certificate in original and pledge release order, if any in original

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If you are PA in issuing office, what will you check?• Check that the application was received only through

your divisional office by registered post

• Refer to the original application from the guard file

• Verify entries available on the manuscript application with that available on the original application

• Check that the date stamp of the office in which the application was submitted is available

• compare the signature available on both applications

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If you are PA in issuing office, what will you check?

• Check that the maturity period is over• If not, check period of non-encashability has

expired.• Check the certificate is not the one which has been

reported lost or stolen • Check that the certificate has not been attached by

a court of law.• Check the certificate is not the one in lieu of which

a duplicate has been issued. • Check the certificate is pledged or not• Submit both the application to Postmaster

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Action by Postmaster – Office of issue

• Verifies both applications

• Makes remarks “Verified. Pay to holder” on the manuscript application, if the signature tallies

• Makes remarks “Verified. Pay on identification” on the manuscript application, If the signature does not tally

• Gets the manuscript application affixed with date stamp.

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Action by Postmaster – Office of issue

• Makes a note regarding the verification made and forwarding of application to …… office in the remarks column of the application for purchase against the original entry of the certificate

• Signs below the certificate in the manuscript application form and the original application for purchase

• Authorises retransmission of the manuscript application to his Divisional office

• Returns all the documents to PA

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What action will you take for despatch?

1. Despatch application in manuscript to his Divisional office by registered post

2. File the receipt for registered article along with the forwarding letter received from the divisional office with the application for purchase

3. File the forwarding letter from your office for retransmission to divisional office also

4. Keep the application guard file in safe custody.

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At office of discharge

Customer presents

1. Matured certificate

2. Pledge release order, if any

3. Application for purchase of fresh certificate, if any

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What advise do you give to the investor?

• Inform him of the maturity value payable(equip yourself with calculation of interest)

• Request him to fill up this amount on the reverse of the certificate

• Request him to sign the certificate with date

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What action will you take for discharge?

• Compare the signature of the holder on the certificate with the one available on the application on manuscript

• Make entries of retransfer to the pledger, if the certificate is under pledge and the pledge release order is correct in all respects

• If the signature tallies submit all the documents to Postmaster

• Ensure proper identification of the purchaser, If the manuscript application contains a remark that “Verified. Pay on proper identification” and submit all the documents to Postmaster

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Action by Postmaster

• Verifies the documents

• Ensures that the identity of the holder is established satisfactorily

• Verify the local address of the holder

• Makes endorsement on the certificate “retransferred to ___________” in case of a pledge

• Passes pay order on the certificate with signature and date stamp

• Returns Certificate and other documents to PA

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What action will you take for payment?

• Payment should be only through account payee cheque irrespective of the amount

• If the discharge is for issue of fresh certificate, take action to issue eligible denomination of certificate as per procedure prescribed for issue of such certificate

• Retain the discharged certificate for follow up action along with manuscript application

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What official entries will you make after discharge?

• Enter date of payment on the manuscript application.

• Prepare advice of payment in form NC-10 in triplicate (Have a look)

• Submit all documents to Postmaster

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How to make NC 10?

• Prepare it in triplicate for each office of issue separately• Mention whether the advice relates to NSC or KVP• Note the office of issue and its HO• Note the name of your office and HO• Note date of payment• Note the serial number of the certificate(s) with prefix letters• Note the denomination of the certificate(s) listed• Note the date of issue of certificates• Note the name of holder• Note the registration number in the remarks column• Affix date stamp• Gets it verified and signed by the postmaster • Fill in the letter number and date of forwarding letter1.1.A

Action by Postmaster

• Verifies all documents

• Gets MO oblong stamp impression affixed on the reverse of Discharged Certificate.

• Signs NC – 10

• Returns all the documents to PA

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How will you dispose NC 10?

• File the original copy of NC 10 with discharge journal(we will see later)

• Forward 2 carbonic copies of NC 10 to the office of registration by registered post

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If you are a PA in issuing office how will you dispose NC 10?

• Note the date of encashment in the reverse of the application form against each certificate

• Fill in the certificate portion on the reverse of triplicate copy of NC 10

• Get the application and NC 10 verified and signed by the postmaster

• Affix date stamp on both copies of NC 10

• File one copy of the NC 10 with application for purchase

• Forward the triplicate copy of NC 10 to the Postal accounts office by registered post with prescribed certificate

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PLEDGING OF CERTIFICATE

• Pledging of Certificate can be done at any time before its maturity to :

• President of India / Governor of State

• Reserve Bank / Schedule Bank / Co-op Bank or Society

• Corporation or Government company

• Local authority like Panchayat, Municipality, City corporation

• Signed application (NC-41) both by the holder and pledgee with certificate are presented

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PLEDGING OF CERTIFICATE….

• The pledgee should furnish a declaration either on NC-41 or separate paper

• A fee of Rs.5/- per NSC and Rs.1/- per KVP should be paid in cash which is credited in UCR

• PA compares signature of holder and other particulars of certificate on NC-41 with original application and record of Sanchay post

• Pass necessary remarks on certificate and original application

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PLEDGING OF CERTIFICATE….

• Impress oblong stamp on NC-41 and file it with original application

• Return the NSC to the Presenter

• During the period of pledge, the pledgee is deemed to be the holder of the certificate

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Nomination

• Nomination register maintained at office of registration( HO or SO)

• Nomination can be cancelled or changed by holder

• No fee for fresh nomination

• For Cancelled or change Fee in shape of postage stamp for KVP Rs1/-R5/-for NSC certificate

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Duplicate certificate

• Apply in prescribed form NC-29 at office of registration( HO or SO)

• Fee Rs5/- for NSC & Rs1/- for KVP Per certificate, Credited in UCR

• HO is competent to issue Duplicate certificate

• Indemnity Bond & Bank Guarantee required but there are certain exceptions

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IMPORTANT TIPS FOR SB PA• KYC document must be obtained from investor at the

time of opening of any a/c or purchase of certificate .• Minor must attend post office to open a/c in his/her

name.• Advise depositor/holder to make nomination• Signature of witness is must in nomination.• If depositor/holder does not want to make

nomination, portion of nomination should be scored out by two red lines.

• If signature does not tally at the time of withdrawal from old a/cs KYC documents are compulsory.

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IMPORTANT TIPS FOR SB PA…

• In case of transfer of a/c KYC documents are compulsory

• All payments of Rs.20000/- and above in respect of closure of account or encashment of certificates must be made by crossed cheque only.

• Payment of amount for DD claim case by crossed cheque only.

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• Please preclude from taking assistance of agent in performing office tasks like making official entries in passbooks, posting transactions in Sanchay Post or manually and impressing date stamps

• Ensure that cash handling limit of Rs.10000/- at a time by SAS agent is scrupulously followed

• SAS/MPKBY/PPF agent should not be permitted to issue cheque from his/her own account on behalf of depositor

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IMPORTANT TIPS FOR SB PA…• Agents should not be allowed to act as messengers

for withdrawal of money of customers.

• No signature or endorsement required on the back side of A/C payee cheque presented at counter.

• Amount of A/c payee cheque is to be credited in payee’s a/c only.

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• Signature of all depositors in application for transfer of account or issue of duplicate passbooks are compulsory

• SB-28 receipt must be issued as and when PB is collected from depositor

• No provision for auto credit interest from MIS to RD a/cs

• Advise of transfer dispatched by service Insured only

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IMPORTANT TIPS FOR SB PA…• Please ensure while crediting the matured

amount of any scheme in SB a/cs that depositor of matured instrument and S.B. a/c are same.

• Issue Advice of payment (NC-10) while making payment of certificates purchased from other post office and send two copies thereof to office of issue by registered post.

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• Exercise 8

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Objective Implementation of the following norms in the Post Offices: Know Your Customers (KYC)...

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Transcript of Objective Implementation of the following norms in the Post Offices: Know Your Customers (KYC)...